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Thursday, September 27, 2012

Romneys Reported Sharp Gain in Foreign Income in 2011 Tax Return

Reuters:  Romneys Reported Sharp Gain in Foreign Income in 2011 Tax Return, by Lynnley Browning:

Mitt Romney and his wife, Ann, more than doubled their investment income from foreign sources in 2011 versus 2010, including some sources in tax havens around the world, according to tax returns released by the Republican presidential nominee's campaign.

The Romneys reported $3.5 million in foreign income out of $13.7 million in 2011 adjusted gross income, the benchmark figure used to figure out taxes owed. That compares with $1.5 million in foreign income on 2010 AGI exceeding $21.6 million, according to the Romneys' tax returns for 2010 and 2011.

That means the Romneys last year derived just over a quarter of their income from non-U.S. investments, such as funds and entities in Bermuda, Luxembourg, the Netherlands, Ireland, and the Cayman and British Virgin Islands, the returns showed. In 2010, the Romneys' foreign income was just 7% of their AGI, which was much higher that year.

While the Romneys' tax strategies are legal, their large share of foreign-sourced income highlights the difference between their tax returns and those of average Americans. ... Overall, the Romneys received income from 50 foreign investment corporations last year, nearly three times the number in 2010, the returns show.

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Comments

Interesting for a President to Be to be off shoring most of his money and then saying he will figure out a way to have more jobs and new corporations in America when he in affect is creating more jobs overseas by his own investments. humm....sounds strange...if he is so successful doing this, why would I as a wealthy individual invest in America with my new found money from lower taxes. I would like to know how he is making all this money overseas so I can follow suit. Maybe he would be better off if he started an investment letter and sold it to his wealthy friends. Please Mr. Romney tell us your investment strategies so we can all become rich and by the way tell us some of your tax strategies too.

But I know you won't because you don't want to help the other 99%.

Posted by: Sid | Sep 27, 2012 8:36:03 PM

As Reuters reports: "The Romneys reported $3.5 million in foreign income out of $13.7 million in 2011 adjusted gross income, the benchmark figure used to figure out taxes owed. That compares with $1.5 million in foreign income on 2010 AGI exceeding $21.6 million, according to the Romneys' tax returns for 2010 and 2011."

Here's an alternative headline: "Romney tax returns illustrate continued decline of American economy under Obama."

To explain, the quoted figures show that Romney's AGI from American sources was $20.1 million in 2010, but plummeted to $10.2 million in 2011. Lots of ordinary American wage earners have suffered like declines in their income.

All things being equal, the most likely explanation is Obama's mismanagement of economic policy.

Posted by: Jake | Sep 27, 2012 9:08:43 PM

What Romney has done he did with his own money, and that's his business.

What Obama has done he did with taxpayer money, which includes sending stimulus money to other nations, and that's everyone's business.

Posted by: Woody | Sep 27, 2012 9:47:08 PM

Jake,

"All things being equal..."? Really?

Posted by: the real anon | Sep 28, 2012 9:21:16 AM

Yes, isn't it a shame that Mr Romney isn't paying more tax than the law entitles? It's always tempting to ask those who promote this sentiment how much of a bonus they normally send to the Treasury each year.

Perhaps Mr Romney and his advisors have discovered that the current US economy and tax law favors overseas investment, despite Mr Obama's best efforts during the past four years.

The more I read about Mr Romney's taxes, the more convinced I become that he knows how to pick first rate advisors and how to manage finances. He has a proven track record, and deserves a chance to improve the disappointing performance we've recently had to endure.

Posted by: Eric | Sep 28, 2012 9:30:57 AM